Interim report - First half-year of 2008

Summary: Although it had been expected that SP Group would record a profit decline relative to the year-earlier period, the decline proved to be more pronounced than anticipated. SP Group generated loss before tax and minorities of DKK 2.0m in the first half-year of 2008. Given the weaker economic growth combined with increased energy, raw materials, payroll and capital procurement costs, achieving the previous full-year profit guidance no longer seems realistic. SP Group still projects a profit for the year. Revenue is expected to be in line with or slightly higher than last year.

The Supervisory Board of SP Group A/S has today considered and approved the interim report for the six months ended 30 June 2008. Highlights of the interim report:

Revenue was up by 0.5% to DKK 452m. Organic revenue growth was negative.
EBITDA was DKK 33.6m compared with DKK 45.3m in H1 2007.
EBIT was DKK 13.1m, down from DKK 26.4m in H1 2007.
The Injection Moulding business area (including SP Medical) performed better than expected, recording an EBIT improvement of almost DKK 1m to DKK 7.6m on the back of a slight revenue improvement.
Conversely, the Accoat coating business and the Polyurethane business area posted revenue and earnings that were somewhat below expectations.
The Vacuum business area recorded a revenue improvement as a result of the acquisition of DKI Form. Earnings picked up in the second quarter, but integration costs prevented an improvement in H1 earnings.
SP Group generated revenue improvements in major focus areas in the first half-year: international revenue, revenue from SP’s in-house brand products and sales to the medical devices industry.
There was a cash inflow from operating activities in the first half-year. Funds were used to acquire DKI Form, a 10% stake in TPI Polytechniek, two large machines previously held under operating leases and new production equipment.
Given the weaker economic growth combined with increased energy, raw materials, payroll and capital procurement costs, achieving the previous full-year profit guidance no longer seems realistic, because of the above-normal uncertainty prevailing as a result of the financial crisis, the exchange rate situation, the high raw materials prices and the economic downturn in certain markets. Accordingly, SP Group now expects revenue growth of 0%-7% instead of the previous guidance of 3%-7%. The profit before tax and minority interests is expected to be in the DKK 0-30m range instead of the previous forecast of around DKK 30m.

For further information please contact CEO Frank Gad

Read the entire interim report here

Med venlig hilsen

Niels K. Agner Bestyrelsesformand	Frank Gad Adm. direktør

Incase of any discrepancies, the Danish version shall prevail.

undefined